Recently, many people have asked me whether foreign exchange investment can make money, so I’ll organize my experiences over the years.

To be honest, there are indeed opportunities in forex trading; the global daily currency trading volume exceeds 6 trillion USD, and the liquidity of this market surpasses that of stocks and futures combined. But the problem is, about 70-80% of retail traders lose money, so the key isn’t whether there are opportunities, but whether you know how to play the game.

I’ve found that many beginners fall into the same trap — not knowing how to use leverage. Leverage is like a double-edged sword; it can amplify your gains but also your losses. I myself initially was greedy and used too high leverage, resulting in losing half of my principal with just a 5% fluctuation. Later, I realized that true experts keep leverage under 10:1.

When starting with forex investment, I recommend beginning with the basics. First, understand what trading options are available — the simplest is foreign currency fixed deposits, which have low risk but also low returns; the medium difficulty is forex margin trading, which is what most people call “trading forex.” The advantage of margin trading is low entry barriers (some platforms allow opening an account with just $50), 24-hour trading, and the ability to go long or short.

When choosing currencies, think carefully. The highest trading volume is EUR/USD, with good liquidity and small spreads, making it especially suitable for beginners. If you want to challenge yourself, commodity currencies like the Australian dollar tend to be more volatile, with larger swings for profit or loss. I personally started with EUR/USD to build experience, then moved on to more volatile pairs once I was more confident.

Be sure to check regulation when selecting a platform. I verify whether the platform has licenses from reputable regulatory agencies like FCA or ASIC, so I won’t fall for scams. Some fake platforms use the names of big brands to deceive people, so be especially cautious.

Regarding my insights into forex trading, I’ll summarize the most important points: First, leverage amplifies not only gains and losses but also your fear and greed, so always stay rational; second, start with small capital so that losses aren’t too damaging and you can gradually gain experience; third, develop a trading plan and stick to it, avoid changing strategies frequently; fourth, always set stop-loss and take-profit levels, and exit decisively when targets are reached — don’t be greedy.

I also recommend beginners practice with demo accounts first, and only move to real money once confident. Forex trading indeed offers opportunities to make money, but the prerequisite is doing thorough research, managing risks, and continuous learning. This isn’t a get-rich-quick game; it’s an investment approach that requires systematic thinking and long-term training.